Sixth Street Urges Caution on Private Assets in 401(k) Plans (1)

While many alternative asset managers are welcoming a future where 401(k) retirement vehicles have access to private investments, Sixth Street Partners’ Co-Chief Investment Officer Josh Easterly is urging caution.

Easterly said on Thursday that he is concerned over the protections available for individual investors in private credit, an asset class that has historically been restricted to sophisticated investors.

He said that when the firm started its foray into business development companies 15 years ago, many individual investors didn’t understand key differences between certain financial metrics.

Josh Easterly

Photographer: Chris J. Ratcliffe/Bloomberg

“By the way, some of that still exists,” he said during a call ...